Organic growth of +44% (at constant exchange rate and on a like-for-like basis)
Paragon ID (Euronext Paris - FR0013318813 - PID), leading provider of identification solutions for e-ID, Smart Cities & Mass Transit, Track & Trace and Brand Protection and Payment, publishes its revenues for the 4th quarter 2022/2023 (1st April 2022 – 30th June 2023).
|In M€ - IFRS |
Non audited data
|Change||Change at constant exchange rate and like-for-like basis|
|12 months Turnover||130.8||192.0||+47%||+44%|
The subsidiary EDM Technology has been consolidated since 1 October 2021. Urban Things and Tracktio have been consolidated since 1 July 2022. The activity relating to the acquisition of the assets of Uwinloc is being accounted for since 1 January 2023.
In the 4th quarter of its 2022/23 financial year (ending 30 June 2023), Paragon ID posted consolidated sales of €51.0m, an increase of +29%. At constant exchange rate and on a like-for-like basis, organic growth for the quarter was +28%.
By the end of the 2022/23 financial year, consolidated sales had risen by +47% to €192.0m, of which +44% on a like-for-like basis.
This level of activity is in line with the annual sales target which was raised at the end of April to €185m+.
Double-digit growth across all divisions in 2022/23
The Transport & Smart Cities division (36% of 2022/23 revenues) recorded sustained annual growth of +44%. This growth is the result of the return of passengers to urban transport in all geographical areas following the end of the Covid-19 health crisis, price increases passed on to customers to compensate for the inflation in production costs, and the successful integration of EDM Technology in the United States.
Digital mobile ticketing platforms and MaaS (Mobility as a Service) offerings continued to develop in 2022/23, generating new sources of recurring revenue, albeit at a slower pace than expected.
The Traceability & Brand Protection division (33% of 2022/23 revenues) achieved growth of +44% in 2022/23, marked by sustained activities in the aviation sector. The growth of other activities in IoT (Internet of Things) was slowed down by economic uncertainties and difficulties encountered in supply chains within the Retail sector.
The Payment division (17% of 2022/23 revenues) recorded growth of +14% in 2022/23. This solid growth is the result of good momentum in traditional sales of gift, loyalty and payment cards, as well as RFID modules for contactless payment and AmaTech licence revenues for contactless metal payment cards. The marketing of proprietary metal payment cards began in 2022/23 and will contribute more significantly to the division's sales in 2023/24.
e-ID sales (14% of 2022/23 revenues), accelerated in the 2nd half of the year, with the first deliveries of eDatapages for passports and ID cards following the large orders received at the end of 2022 for these polycarbonate solutions. Over the year, the division recorded growth of +91%.
Proposed simplified public offer by Grenadier Holdings Ltd.
On 19 June 2023, Grenadier Holdings Ltd, the majority shareholder of Paragon ID, announced its intention to file a simplified cash offer (“the Offer”) for the shares it does not currently own, at a price of €38.01 per share.
The Offer price corresponds to the net asset value per share as shown in the Company's financial statements as at 30 June 2022 and represents a premium of +25.1% over the weighted average share price of the last 60 days. This price represents a premium of +35.8% over the closing price of the session preceding the announcement of the Offer (as of 16 June 2023).
Paragon ID's Board of Directors has noted the friendly nature of this Offer. The Board of Directors has unanimously welcomed, in principle, this proposed 0ffer, without prejudice to the Board of Directors' formal, reasoned opinion on the Offer, which will be issued after having taken the report of the independent expert, Finexsi, into due consideration. Finexsi has been commissioned to draw up a report on the financial terms of the Offer, in accordance with the provisions of Article 261-1 I 1° and II of the General Regulations of the Autorité des marchés financiers (AMF).
Grenadier Holdings Ltd. has also announced its intention to implement a squeeze-out procedure in order to acquire all Paragon ID shares it does not hold should it hold at least 90% of the Company's share capital and voting rights after the Offer. The squeeze-out would be carried out in return for compensation equal to the Offer price, i.e. €38.01 per share in cash.
The Offer was filed with the Autorité des marchés financiers (AMF) on 13 July 2023.
|2022/23 Yearly results||Wednesday 25 October 2023|
|2023/24 Q1 turnover|
These dates are given for information only. They are likely to be modified if necessary. The publications will take place before the opening of the Euronext markets.
About Paragon ID
About Paragon ID Paragon ID is a leader in identification solutions, in particular in the e-ID, Transport & Smart Cities, Traceability & Brand Protection and Payment sectors. Paragon ID employs more than 650 staff, with manufacturing sites in US and Europe, close to its customers.
Paragon ID is listed on Euronext Paris (Euronext Paris - FR0013318813 - PID) with a majority of its shares being held by Grenadier Holdings (formerly Paragon Group), a privately held investment company, operating in over 30 countries with a global sales reach, €1.5 billion turnover and more than 10,000 employees. For further information about Grenadier Holdings, visit Grenadier-holdings.com.
For further information about Paragon ID, visit Paragon-id.com.